Rupee weaker on importer dollar demand

Thursday, 5 September 2013 00:48 -     - {{hitsCtrl.values.hits}}

Reuters: The rupee traded weaker on Wednesday due to importer dollar demand and the local currency remained under pressure in the absence of strong dollar inflows, dealers said. The rupee spot next or one-day forward, which was active in the market in the absence of spot trade, traded at 133.10/20 per dollar at 0552 GMT, compared with Tuesday’s close of 133.05/10. The currency hit a record low of 135.20 per dollar last week amid panic buying by importers, but it has recovered since then. Spot rupee was quoted at 133.00 in early trade, Thomson Reuters data showed. “The rupee is under pressure and it has weakened in line with the regional currencies,” said a currency dealer. Since early July, the rupee has fallen as some foreign investors pulled out of Sri Lanka’s treasury bonds on expectations the U.S. Federal Reserve will soon taper its bond buying. The Central Bank’s latest data showed foreign holdings in Government securities fell 2% to 493.36 billion rupees in the week ended Aug. 28. The rupee has fallen nearly 4% this year, after depreciating around 10% in 2012.